+

ApEx for group 9

Iqbal Khan (1212021) Supriya Thengdi (1212062)

Harkawal Cheema (1212019)

Sandip Jalan (1212047)

Chanchal Subhash (1212013)

Consumer Behavior

Personality

&

Attitude

Study of

Online retail Jabong

+ Industry Overview

+ India e-commerce Industry overview

India e-commerce key statistics

India's e-commerce market was worth about

$2.5 billion in 2009, it went up to $6.3 billion

in 2011 and to $14 billion in 2012. .

About 75% of this is travel related (airline

tickets, railway tickets, hotel bookings, online

mobile recharge etc.).

Online Retailing comprises about 12.5%.

India has close to 10 million online shoppers

and is growing at an estimated 30% CAGR

vis-à-vis a global growth rate of 8–10%.

Electronics and Apparel are the biggest

categories in terms of sales in retail

Key drivers in Indian e-commerce

Increasing broadband Internet and 3G

penetration.

Rising standards of living

Availability of much wider product range

Busy lifestyles, urban traffic congestion and lack

of time for offline shopping

Lower prices compared to brick and mortar retail

+ About

Myntra , headquartered in Bangalore and has

been funded by Venture Capital funds like Tiger,

Kalaari, Premji Invest, IDG & Accel Partners

Myntra was established by Mayank Sharma in 3rd,

August 2007 in the business of personalization of

products online. The products ranged from T-shirts,

mugs, greeting cards, calendars, key chains, diaries

etc.

In 2010, the company expanded its catalogue to

retail fashion and lifestyle products.

Myntra.com currently offers close to 50,000

products from more than 600 Indian and

international brands. It ships about 5 million

goods per month by hosting around 3,000 sellers

Myntra’s value proposition is “giving

consumers the power and ease of

purchasing fashion and lifestyle products

online”

Myntra sales of Rs.800 crore in 2013-14,

targeting sales of Rs 1,500 crore in 2015,

expects Rs 10,000 crore turnover in next 4

years

May 2014, Flipkart, India's largest online

retailer, acquired Myntra and would

invest $100 million (nearly Rs. 600 crore), in

the fashion business.

+ About

Jabong.com is an Indian fashion and lifestyle e-

commerce portal, is a part of the Germany’s

Rocket Internet group

Started operations in January 2012, headquartered

in Gurgaon, NCR

Jabong.com follows both an inventory model and a

managed marketplace model, in the inventory

model products are sourced from brands and stored

in the Jabong warehouse. In the managed

marketplace model, Jabong doesn’t store the

inventory but takes care of customer service and

returns

The e-store at present carries over 1000

brands and over 90,000 products.

In March 2013, Jabong was shipping

6000-7000 orders a day with annual

revenues of 100-150 million USD.

During September 2013 Jabong was

shipping 14,000 orders on a daily basis out

of which 60% were from small town

Estimated sales of Rs 900 crore in fiscal

2013

+ About

Zovi.com was launched in July 2011

The Zovi value proposition, locally design and

manufacture high-quality lifestyle apparel and

accessory products and exclusively offer them

online to you at extremely reasonable prices

Zovi designs its own apparels, follow the fast

fashion model and introduce new styles and

products every week

Zovi wanted to pass back the premium which

consumers pay for brands – and still charge a

significant premium

Zovi plans to earn 250 million USD in revenue in

three to four years(from Nov 2013)

+ ApEx Approach

+ ApEx Approach

Industry Overview

Target Consumer Personality Survey

Attitude towards Brands Survey

Brand Personality Assessment

Issues identification

Research mapping

Recommendation

+ Personality Traits of Online Shoppers

Personality Traits

Customer Innovativeness

Customer Materialism

Cognitive Personality

Customer Ethnocentrism

Sub classification

Stimulation Level

Visualizers

Verbalizer

Materialism

Compulsive Consumption

Social Character - Other Directed

Variety and Novelty seeking

Need for Uniqueness

Need for Cognition

Survey Questions

I often attend parties

I frequently chat online or through SMS/phone calls

with friends

I watch a lot of TV

I read newpapers

I read fashion magazines

I read generic magazines such as Reader's Digest

I do a lot of shopping

I like to dress for fashion and not for comfort

I like to visit places where I can meet many people

rather than a calm place

I like to be considered a leader

I like to be the center of attraction in a gathering

I like to keep myself updated on the latest fashion

trends

I like to read reviews on products I plan to use

I like to give reviews on products I have used

+ Personality Survey Response

2.75

3.17

2.67 2.68

3.20

2.86

4.25

3.6

3

0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

AVERAGE of Myntra

Summary

AVERAGE of Jabong

Summary

Average of Zovi

Personality of Customers

Cognitive Personality

Customer Innovativeness

Customer Materialism

+ Attitude Survey Response Myntra Jabong Zovi

Affective 3.867 3.639 2.944 I find the site design of the site Appealing 3.8 3.75 2.5

I find the aura of the the site appealing 4 3 2.25

I like the packaging in which the site delivers me products 3.8 4 3.5

I love the way the products are delivered by the site 3.8 3.5 3

I like the personalization of the the site website 2.8 2.5 1.75

I like the visuals (pictures, videos) on the the site website. 4 3.5 3.25

I find the website of the site to be fast and responsive 4.6 4.25 3.75

It is easy to search on the site 3.6 4.25 2.75

The payment process of the site is convenient 4.4 4 3.75

Cognitive 3.956 3.75 2.861 I like the service delivery of the site 3.6 3.25 3 I like the brands cataloged in the site 4.4 3.75 1.5

The product catalogue of the site offers variety 3.8 3.75 2.5

I like the variety in terms of color, size and types of products in the site 4.2 4.5 2.5

The guarantee offered by the site gives me assurance 4 3.5 3.75

I feel the shipping charges on the site are reasonable 4.2 4 3.25

I think the site delivers products in a reasonable time 4.6 4.25 3.75

The testimonials of the site help me in making right purchase decision 2.6 2.75 1.75

I am confident that my transaction on the site are secure 4.2 4 3.75

Connative 4 4.313 3.813 I would buy from the site only if there are discounts 3.4 4 3.75

I would buy from the site only if it has return policy 4.6 4.5 3.75

I would buy from the site only if it has flexible payment options 4.4 4.25 3.75

I would buy from the site only if it has option of product trails 3.6 4.5 4

+ Brand Personality Analysis

Ad no Consumer Personality Trait Brand

Personality

1 Materialism (Compulsive ++ ) Excitement +

Competence

2 Cognitive Excitement

3 Materialism (Compulsive ++ ) Excitement

4 Variety and Novelty Competence

5 Materialism (Compulsive ++ ) Competence

6 Materialism (Compulsive ++ ) Excitement

Brand Personality:

Excitement

Consumer Personality Trait :

Materialism

https://www.youtube.com/watch?v=roZwF

RvdwRc

+ Brand Personality Analysis

Brand Personality:

Sophistication

Consumer Personality Trait :

Social Character – Other Directedness

https://www.youtube.com/watch?v=Tu1Pf

yb27Nc

Ad no Consumer Personality

Trait Brand Personality

1 Need for Cognition Competence

2 Social Character - Other

directedness

Excitement +

Sophistication

3 Social Character - Other

directedness

Excitement +

Sophistication

4

Social Character - Other

directedness, Ideal

Social Self

Excitement +

Sophistication

+ Brand Personality Analysis

Brand Personality:

Sincerity

Consumer Personality Trait:

Social Character, Other Directedness

https://www.youtube.com/watch?v=la9U_

ztz5kY

Ad no Consumer Personality

Trait Brand

Personality

1 Social Character - Other

directedness Sincerity

2 Social Character - Other

directedness Sincerity

+ Process for Identifying Issues

+

Issue 1: Does efforts by a Online Retailer towards countering

customer dogmatism impacts only the Retailer or the Other

Online Retailers as well ?

Consumer

Personality

Attitude

towards Brand

Dogmatism

Intention or

Behavior

Brand Efforts to

Reduce

Dogmatism

Issue 1 : Dogmatism and online retail

+

Issue 2: Role of Brand personality on purchase

intentions of the consumer

Ad - imagery Brand

Personality

Consumer

Attitude

Purchase

intentions

Issue 2 : Impact of Brand Personality

+

Issue 3: Online retail features for targeting

compulsive consumption

Brand Ads

Quite High on

Consumer

Compulsive

consumption

Brand

Personality

Brand

personality

portrays

Sophistication

or Excitement

or Sincerity That lead to

the question

Issue 3 : Compulsive consumption

+

Issue 4: Impact of Personalization on consumer attitude towards

online Purchase

Personalization score for all websites were lowest, although research indicates positive relationship

between personalization and favorable attitude

Myntra Jabong Zovi

Affective 3.867 3.639 2.944

I find the design of the site Appealing 3.8 3.75 2.5 I find the aura of the site appealing 4 3 2.25 I like the packaging in which the site delivers me products 3.8 4 3.5 I love the way the products are delivered by the site 3.8 3.5 3 I like the personalization of the website 2.8 2.5 1.75 I like the visuals (pictures, videos) on the website. 4 3.5 3.25 I find the website to be fast and responsive 4.6 4.25 3.75 It is easy to search on the site 3.6 4.25 2.75 The payment process of the site is convenient 4.4 4 3.75

Issue 4 : Personalization and Attitude

+ List of identified issues

1. Do efforts by a Online Retailer towards countering customer

dogmatism impact only that retailer or other Online Retailers

as well?

2. Role of website personality on purchase intentions of the

consumer

3. Online retail features for targeting compulsive consumption

4. Impact of Personalization on consumer attitude towards

online Purchase

+ Our choice for recommendations:

Jabong

Our assessment identified that Jabong needed more

improvement in the areas of the issues identified by us than

Myntra.

Zovi was exceptionally lagging is most of our issues and

hence we decided not to take up this site for our

recommendations

+

Issue 1: Do efforts by a Online

Retailer towards countering

consumer dogmatism impact

only that retailer or other

Online Retailers as well?

+ Dogmatism Trait Individual openness towards new and unfamiliar products, services, or/and ideas

High dogmatic individuals

More discomforted by a stimulus’ ambiguity or uncertainty

More likely to easily accept the advice of prestigious communicators

Low dogmatic individuals

Consistently comfortable with the change and vagueness,

Have more open beliefs systems and

Evaluate information on a more objective basis.

Perceived risks for high dogmatic individuals

privacy infringement,

system security and fraudulent behavior of the merchants,

credit card fault, and

product risk.

Challenges in online consumption for high dogmatic individuals

Newness of the online consumption

Unfamiliarity of environment

Gathering specific pre-purchase information

+ Dogmatism – paper findings

Dogmatism is negatively related to intent to consume

online

The relationship between dogmatism and intent to

consume online is moderated by trust in the e-tailer

The relationship between dogmatism an intent to consume

online is moderated by perceived value of exchange

+ Jabong Myntra Zovi

Reduce uncertainty and risk

associated with online

consumption – High

Dogmatism

- 100% Original promise

- 30 days free return

- Cash on delivery

- Privacy policy

- High Ad spending on

traditional media and

social media

- Display ads customised for

browing behavior

- Celebrity endorsement

- 100% Original promise

- 30 days free return

- Cash on delivery

- Privacy policy

- High Ad spending on traditional

media and social media

- Superior site navigation

- Limited ads (traditional

& Social media)

- Poor Site navigation

- No visual on home page

to give assurance of

return policy, return)

- No link to privacy &

Terms and condition

without creating account

Create value by

aggregating buyers and

sellers, creating time utility,

reducing transaction cost –

Utilitarian function

- Discounts

- Convenience - Mobile apps

- online tracking

- Drop off to charges

- Free delivery

- Return policy (some charges

of CoD levied)

- Discounts

- No shipment charges amount

exceeding 999

- online tracking of delivery and

shipments

- Convenience - Mobile apps

- Attractive offers and

positioned as value for

money

- free shipment for order

more than 599

- higher discounts for

higher transaction

amount

Stimulate consumer trust - 1500/- on signup

- Events like Jabong Fashion

week

- Gift cards

- Establish delivery trust, of

quality and transaction

transparency

- Loyalty and referral programme

- Gift cards

- no signup offer

- no loyalty or referral

programme

+ Recommendations – Issue 1

Jabong needs to concentrate on messages to reduce

consumer dogmatism towards Jabong, not just on conative

behavior of the consumer.

Emphasize in advertisements, website and consumer

communication

No privacy infringement,

High system security,

Checks against fraudulent behavior of the merchants,

Safeguards against credit card fault, and

Product originality

+ Issue 2: Role of website

personality on purchase

intentions of the consumer

+ Model for role of website

customer orientation and

website personality on

purchase intentions of the

consumer

Consumers look for congruity in the personality expressed through product merchandising, logos, designs, etc. with the website’s customer orientation (a proxy of behaviour).

If congruity exists consumers should demonstrate a greater preference for that website’s products

+ Paper Findings Higher website customer orientation has a positive impact on the

enthusiasm, genuineness, solidity, sophistication but negative effect on the unpleasantness dimension of the website personality

Perceived Website quality relates (a) positively to higher website customer orientation (b) positively to the perosonality dimension of enthusiam, genuineness, solidity and sophistication (c) negatively to unpleasantness

Higher (a) website customer orientation and (b) website quality relate positively to purchase intention

The impact of website personality on purchase intent is mediated by website quality

A positive relationship exists between the attitudinal measures of purchase intention and actual online page visits

+ Analysis from survey findings # Customer Orientation Myntra Jabong Zovi1 The site tries to meet the customer's needs 3.96 3.75 2.86

2 This site shows concerns about the customer's best interest 2.60 2.75 1.75

3 This site takes a problem solving approach in presenting products or services to customers 3.60 4.25 2.75

4 This site recomments products or services that are best suited to solving the customer's needs 2.80 2.50 1.75

5This site has some features that can help customers to find out which kinds of products or services

would be most helpful to them2.60 2.75 1.75

3.11 3.20 2.17

# Website Personality Myntra Jabong Zovi1 Solidity 4.60 4.25 3.75

2 Enthusiasm 4.00 3.00 2.25

3 Genuine 4.27 3.92 3.75

4 Sophisticated 3.53 3.25 2.50

5 Unpleasant (Negative - High rating means it is pleasant) 3.87 3.64 2.94

4.05 3.61 3.04

# Website Quality Myntra Jabong Zovi

1 Consumer's perception about the website quality 3.87 3.64 2.94

+ Observations from survey & paper

Best among the three. Hence, the purchase

intention of the consumer is most likely to be

highest for Myntra followed by Jabong

Low on all the aspects – Customer

orientation, Website Personality &

Website Quality

Highest on Customer orientation, but

low on other aspects

+ Recommendations – Issue 2

Jabong need to improve perceived website quality and

project distinct website personality

Make website personality more enthusiastic by making

website

Friendlier

Livelier

Vibrant using color schemes

+

Issue 3: Online retail features

for targeting consumers with

compulsive consumption

behavior

+ Compulsive Consumption Trait

Shopping addiction or Oniomania

“Shop till you drop”

Repetitive buying

Lack of impulse control over buying

Compulsive shoppers buy items they don’t need & will never use

How online retail helps

Opportunity to buy frequently, at any time

Unobserved buying

Variety of products

Ready information (reviews, fashion trends)

Satisfy urge to buy quickly

+ Buying motivations – paper findings

Ability to buy unobserved and avoid social interaction

Need to hide

Fear of instant recognition

Immediate positive feelings

Immediacy of shopping and buying rather than receiving or consuming products

Variety and choice

Across product categories

Across retailers

Information Search capability

Greater need to conform to

social standards

Availability of latest trends via

electronic communication

Positive correlation No correlation

+

Ads target consumer

personality – Materialism

(heavy bias towards

Compulsive consumption)

Website does not allow 1 click

buy

Display ads with browsed/

bought items violate privacy

Too many SKUs is unnecessary

Website design is not suitable for

compulsive buyers

Brand Assessment

Ads target Social character – other directness personality

Website has quick buy option

Browsing privacy is protected

More Apt for compulsive buyers

+ Recommendations – Issue 3

Better align website features for consumers with compulsive

consumption behavior

Introduce 1 click buying

Provide option for private viewing which disables tracking of user

buying/ browsing history

+ Issue 4: Impact of

Personalization on consumer

attitude towards online

Purchase

+ Consumer Attitude towards

Personalized Agents

Personalized Agents

Individual features of a website

The attitude of a online shopper towards a personalized

agent will depend on

Consumer’s depth of processing (ELM)

Consumer’s breadth of sampling (CST)

+ ELM model and online retail buying behavior

Central

Variable

Peripheral

Variable

User Characteristics Motivation, ability, Trait

Depth of Info.

Processing

Attitude

Change

Buying

Behavior

Central

Route

Peripheral

Route Perceived

Usefulness Excluded since web

personalization is a central route

of influence

Persistent

Attitude

+ Paper findings

Quality of

Personalization

Perceived

Usefulness

Attitude

Valence

Item

Selection

Depth of

Processing

Attitude

Persistence

Variation of

personalized

Items

Cumulative

breadth of

sampling

Attitude

Confidence

Subsequent

breadth of

sampling

+ + +

H1 (+)

H4 (-)

H3 (+)

H5 (+)

H2 (-)

H6 (+)

+ Comparison of the sites

Brand Quality of personalization Variation of

personalization Ability to trigger depth in

processing

Myntra • Similar stuff, will not trigger

purchase only browsing.(-)

• Navigation buttons reduce cost

of navigation (+)

• No info on hover increases cost

of sampling (-)

• Low variation in

relevance(+)

• Textual description, might cause lack of

interest and reduced depth of

processing.(-)

Jabong • Suggestions below the fold (-)

• Suggestions not use specific (-)

• High variation in

relevance (-)

• Ad covering part of description(-)

• Description below the fold(-)

Zovi • Suggestions seems to

complementary and hence

conative (+)

• But is below the fold (-)

• Irrelevant things that I viewed

earlier is shown (-)

• Trending items is first in list

• Medium variation in

relevance (-)

• Bulleted description easy to read.(+)

+ Recommendations – Issue 4

Improve quality of personalization.

Bring suggestions above the fold.

The suggestions must be personalized on user.

Increasing depth of processing

Make bulleted description (easy to read)

+ Thank You Questions?

+ Appendix

+ India online retail reach

Retail category penetration has

increased to 60% reach and has grown

to 37.5 million unique visitors a month,

an overall growth of 43% annually.

The top retail sites shown to the right

have each seen a growth of over 100%

in the last 12 months.

Amazon is the most visited retail site .

Flipkart leads the way among the Indian online retailers with 7.4 million unique visitors a month,

growing at 431% annually.

Jabong and Myntra have been competing closely in the lifestyle category with over 5.3 million

uniques each.

+ Brand Beliefs

Jabong Myntra Zovi

Fun Premium Not widely known

Convenience Stylish For teenagers

Excitement Variety

Reliable Top brands

Secure

+ Quality of Personalization.

Similar stuff. Might create

confusion.

More Depth of Processing?

Low cost of navigation

Hover gives no info.

Hence increasing cost of

sampling

+

Ad covering up

part of the

description

Description is

below the fold

+

Bulleted data easy to

compare. Probably more

depth of processing

Irrelevant

samples

Show what is

trending not what

the customer

might like

Complementary

products, but

placed below the

fold